There are many sources of funding available to help you finance your tutoring business. One of the main benefits of Tutor Doctor's franchise model is that it is a low investment, home-based franchise business. You will not need to worry about extraneous costs for a building, equipment, fixtures, signs, inventory and leasehold improvements like you would for center-based tutoring businesses.
Just the same, there are the requirements of having a "pillow" of working capital on top of the franchise fee to properly guide the business through its startup stages.
Tutor Doctor works with GUIDANT FINANCIAL to assist and support those looking for help with financing their Tutor Doctor franchise business.
Guidant Financial is made up of experts who help everyday people fund small businesses and franchises through a full suite of funding solutions, which include SBA loans; unsecured loans; portfolio loans; and equipment leasing, plus Rollovers as Business Start-ups (ROBS). In fact, they structure more ROBS arrangements each year than any other provider in the space and boast a spotless IRS track record. We are pleased to have them partner up with us!
Take five minutes to discover what types of business financing you may be eligible to receive.
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1. Talk to your franchisor before searching for outside financing; get approved or pre-qualified.
2. The most common source of start-up capital is friends and family. Use them.
3. Seek out lenders that understand not just small business but franchising as well.
4. Be totally honest and upfront with lenders. Hide nothing. Be prepared to explain everything.
5. Neatness counts. Fill out your credit and loan applications clearly. Typed is better.
6. Don't weigh down your loan application with attached documents.
7. Don't exhaust your liquidity by paying off outstanding debts before filing a loan application. Lenders want you to have capital available.
8. If you lack liquidity, find a partner with money.
9. Consider equipment leasing to conserve start-up capital and improve the appearance of your balance sheet.
10. Keep debts and expenses to a minimum. Many business owners take on too much debt, forgetting that cash flow must pay that debt.
11. Consider buying used equipment, furniture, vehicles, etc.
12. Let your fingers do the walking on the internet before wasting time, energy, gas and phone calls. You'll find useful information. Some sites even allow you to file loan applications online.
13. Don't overlook angel investors and venture capitalists.
14. Don't give up.
And, finally, it is worth giving us a call and having a quick discussion with one of our Franchise Directors. Tutor Doctor has been known to offer favorable financing on an individual basis. It is worth giving us a call!